No, i was not in init 3, i was in init 5 using xnetpkg.
And i have it fixed now. I was dumb enaught to NOT read the changelog.
There it said to remove howl and python-xdg before updateting. I have removed both and xfce and reinstalled avahidaemon, the new python-2.5 and xfce (latest) and it works now.
Even though i must say, that since the update i get a nasty black sceen wih some sort of pixel-error (rainbow stuff) across the screen.
I am gonna check later weather I am using the vesa or ati driver.
BTW: i have a ATI Rage128, is there a better driver than "ati"?